Approximately $250 billion has been wiped out from the entire crypto market cap today amid a mass market slump. The global stock and crypto rally hit a wall Ton uesday, dragged lower by artificial intelligence and tech companies. Crypto liquidations over the past 24 hours have soared to $1.37 billion at the time of writing, per CoinGlass data.
Market sentiment has also visibly dipped, with the annualized futures premium on major exchanges dropping from roughly 7% to below 4% over the past week, according to Velo data. Despite the dip, trading activity remains active, with investors likely cashing in on the mass market slump. BTC dominance is up thanks to other top crypto assets like ETH and XRP slumping further.
Outside of the crypto market cap today, the US stock market also saw loads of red. Over $730B was wiped out from the market, with leading tech stocks like Nvidia and TSLA leading the decline with over 4% dips each. Earnings from defense company Palantir appear to have helped trigger worries among traders. The company’s shares, which have soared by more than 160% this year, tumbled by more than 8% despite the company’s quarterly results beating Wall Street’s earnings and revenue expectations.
Furthermore, Comments made overnight by the CEOs of two major investment banks also drew traders’ attention. Goldman Sachs’ David Solomon and Morgan Stanley’s Ted Pick warned that stocks could be poised for a pullback. “We should welcome the possibility that there would be drawdowns, 10% to 15%, that are not driven by some sort of macro cliff effect,” Pick said Monday night.